What Happens if You Forget To Endorse a Check at the ATM?

Writing Checks, Paying Bills, and Calculating Home Finances Credit Debts

Believe it or not, the humble check is still an important part of day-to-day finances, whether you use them regularly or not. Despite the rise of digital payments, many still rely on checks for a variety of transactions. But, can a check be deposited without a signature? Here’s what you should know.

How a Check Gets Filled Out

A check is a written, dated and signed instrument that directs a bank to pay a specific amount of money to the bearer. The process of how to write a check involves filling out the date, the payee’s name, the amount in numbers and words, and finally, the account holder’s signature.

What the Signature on a Check Means

The signature on a check signifies the account holder’s authorization of the payment, and thus, is necessary when you need to deposit the check. Without the signature, a check is considered incomplete and invalid. Banks rely on signatures to verify the authenticity of checks and to protect against unauthorized transactions.

Forgot To Endorse Your Check at the ATM? What You Need To Know

Forgetting to endorse a check before depositing it at an ATM might seem like a minor oversight, but it can lead to some inconvenience and delays in accessing your funds. When you deposit a check, endorsing it is an important step. It confirms your identity as the recipient and authorizes the bank to process the check. Here’s a closer look at what happens if you forget this important step.

The Check Processing Delay

When you deposit an unendorsed check at an ATM, the bank’s processing system might initially accept it. However, once the check reaches the clearing phase, the bank will notice the missing endorsement. This will flag the check as incomplete or invalid. As a result, the bank will pause the processing, which can delay the availability of your funds.

Bank Notification

Typically, the bank will contact you to inform you about the issue. They might send a notification via email, phone call, or through a message in your online banking portal. The bank will usually instruct you to visit a branch to endorse the check in person or to endorse the check and deposit it again.

Potential Fees

While most banks are understanding and won’t charge a fee for a simple mistake, it’s not entirely out of the realm of possibility. Some banks might have policies that impose fees for depositing incomplete checks. It’s always a good idea to check your bank’s fee schedule so you understand any potential charges you might incur.

Risk of the Check Being Returned

If the bank cannot contact you or if the issue isn’t resolved in a timely manner, the check may eventually be returned to you by mail. This is especially likely if the check is from another bank or if the bank’s policy is strict about unendorsed checks. Once returned, you would need to endorse it and then redeposit it, further delaying access to your money.

3 Tips To Remember to Sign Your Checks

To prevent this from happening in the future, make it a habit to endorse your checks as soon as you receive them. Here are a few tips to help you remember:

1. Create a routine: Always endorse checks immediately after receiving them. Keep a pen handy in the area where you usually handle your finances.
2. Set reminders: If you often deposit checks via ATM, set a reminder on your phone or create a checklist to ensure you don’t miss endorsing the check.
3. Use online banking: If possible, switch to mobile check deposits. Many banking apps require you to take a picture of both sides of the check, which can remind you to endorse it before submitting.

Can a Check Be Deposited Without a Signature?

Usually, a check can’t be deposited unless it’s signed by the person who wrote it, known as the drawer. Here’s what this means:

1. Drawer’s signature: The person who writes the check needs to sign it. This signature shows that the person agrees to pay the amount on the check. If the check doesn’t have this signature, the bank won’t accept it for deposit or cashing.
2. Endorsement signature: If you get a check, you must sign it before depositing or cashing it. This is your endorsement. But, in some cases, if you’re putting the check into your own bank account and the check is written to you, your bank might let you deposit it without your signature. This isn’t a rule for all banks, though — some might still require your signature, so it’s not always guaranteed.

IF the check is made payable to you, some banks might let you deposit it without signing the back, but it’s best to check with your bank first.

Are There Exceptions or Special Cases?

There may be other special circumstances when it comes to depositing your check, such as:

• Pre-signed checks: Some business checks come pre-signed or use a facsimile signature. These are generally considered valid if the business has authorized their use.
• Bank policies: Some banks might have specific policies allowing the deposit of unsigned checks under certain conditions, such as payroll checks directly deposited into the employee’s account.
• Mobile deposits: With the rise of mobile banking, some banks may have different requirements for mobile check deposits. In general, though, you would still need to properly endorse the check.

What Can Happen with Unsigned Checks

Handling unsigned checks can lead to several challenges and risks. Here are key considerations:

• Returned checks: Banks may return an unsigned check, leading to delays in processing. This can be inconvenient, especially if the check is for an important payment like rent or a mortgage.
• Accounting discrepancies: For businesses, depositing checks without proper signatures can lead to accounting discrepancies. It can complicate financial records, especially if the check is returned or questioned later.
• Delays in funds availability: Even if a bank initially accepts an unsigned check, it may hold the funds until the check is verified. This delay can disrupt cash flow and financial planning.
• Issues with recurring payments: If a check intended for a recurring payment (like a subscription or installment) is unsigned, it might not only affect the current transaction but also future ones linked to it.
• Potential for miscommunication: An unsigned check can create confusion and miscommunication between the payer and payee. It may require additional follow-ups to resolve the issue, consuming time and resources.

Make sure that all checks are properly signed and to communicate with your bank about their policies on check handling.

How To Write a Check Properly

To avoid issues with unsigned checks, it’s vital to know how to write a check correctly:

1. Write the date: Fill in the current date on the line at the top right-hand corner.
2. Write the payee’s name: Enter the name of the person or organization you are paying.
3. Write the amount in numeric form: Write the amount in numbers in the box next to the payee’s name.
4. Write the amount in words: Write out the amount in words on the line below the payee’s name.
5. Fill out the memo line (optional): This is for your reference or the payee’s.
6. Sign the check: Sign your name on the line at the bottom right-hand corner.

Final Take

A check cannot be deposited without the drawer’s signature. The signature helps confirm and authorize the transaction. While there may be some exceptions based on bank policies or specific circumstances, these aren’t the norm. Understanding how to write a check correctly and the importance of signatures goes a long way in ensuring smooth financial transactions and avoiding any potential complications.

Editor's note: This article was produced via automated technology and then fine-tuned and verified for accuracy by a member of GOBankingRates' editorial team.

This article originally appeared on GOBankingRates.com: What Happens if You Forget To Endorse a Check at the ATM?